How to check legitimacy of a real estate agent? A question that may pop on your head when you decide to purchase a property and needs assistance. When buying a property making sure the seller in which you are planning to buy is a legitimate in the business and has some proof as what is laid into the contract or agreement is a must. Nowadays lots of different types of fraud and scams are present, just looking for a prospect victim which they could hunt for a long time already especially when it comes to property transaction regardless if you are a buyer or seller. Maintain your awareness and ensure that the people and companies you’re attempting to transact with are trustworthy and legitimate in the areas in which they are registered to do business.
A good deal is only one that is free of complications. It is the process of thoroughly researching the property’s details, history, and previous transactions in order to avoid any unpleasant experiences in the future. Due-diligence is of many types and based on the requirement and the type of property the concerned type of due diligence is done.
Hiring the right real estate professional, whether you’re buying or selling, is critical to getting the best deal possible when it comes to properties. Knowing what questions to ask will assist you in determining whether or not someone is a good fit for you.
What Is the Role of a Real Estate Agent?
A real estate agent is qualified to assist with the purchase, sale, or rental of real estate. Real estate agents can work in either the residential or commercial sectors of the industry, and they can represent both the buyer and the seller (or in some cases, the renter). It is important to check the legitimacy of the real estate agent before any transaction is established.
A real estate broker is a licensed real estate agent who also holds a broker’s license. This enables them to own a brokerage firm and manage a team of agents. They are capable of listing and selling properties on their own. They may also run their own business, recruiting and training new agents.
Real estate agents are responsible for a variety of tasks, which may include:
- advising sellers on how to price and prepare their home for sale
- Marketing and displaying a property to prospective buyers
- Providing guidance and insight to prospective home buyers
- Creating a list of available properties based on a client’s interests and needs, such as size and location
- Negotiating a sale on behalf of either the buyer or the seller
- assisting in the preparation and filing of necessary documents such as purchase offers, counteroffers, contracts, and other agreements
A real estate broker may also perform the following tasks in addition to these:
- Running a real estate brokerage or team of real estate agents
- Buying and selling properties independently
- New agent recruitment and training
- Managing a team of agents
- Managing any escrow accounts for the team
- Ensuring that all agents and the brokerage follow local laws
You may think that searching for homes online is simple, but a good real estate agent can manage the search for you by staying on top of new listings, scheduling viewings, and communicating with the agent representing the seller.
Agents also have access to more home listings than the general public. When the time comes to buy, a real estate agent can assist a buyer in navigating the purchase contract, which is critical to determining how much you will pay for the home over the life of a mortgage loan.
Procedures to Follow Before Hiring a Real Estate Agent
Before you hire a real estate agent, they will assume you have prepared to buy a home. Here are some of the most crucial first steps to take.
Obtain pre-approval: A mortgage pre-approval is essential because it will help you determine your new home search price range. You don’t want to waste time looking at houses that are out of your price range.
List your top concerns for housing: Be aware of the type of house you want, the features you require, and the ones you’d like. If you aren’t already familiar with the towns and areas where you want to live, it’s also beneficial to do so.
Learn about the mortgage loan process: This is especially true for first-time buyers. Your budget should include a down payment (roughly 20% is ideal) and earnest money—a deposit that can be applied to closing costs or the down payment once your bid on a home is accepted. You’ll also need to budget for annual property taxes and insurance, which you’ll most likely pay into an escrow account as part of your monthly mortgage payment.
Where to Look for a Real Estate Agent
Although word-of-mouth referrals are the most common—and often the most comfortable—method of locating a real estate professional, there are other ways to connect with agents who can assist you.
Your personal network
Inquire with everyone you know, including coworkers and neighbors who have recently bought or sold. Don’t forget to make use of your social media connections. A personal recommendation from someone you trust can be extremely valuable. It can also provide you with a realistic picture of how the agent manages the process and whether you would get along with that person. A recommendation is one way to check the legitimacy of a real estate agent.
Examine the online presence of each agent, including social media platforms and consumer ratings. Also, look around your neighborhood to see which Realtors and companies are listing homes, and go to open houses to meet them in person.
Here are some pointers to assist you in selecting the ideal real estate agent for you.
One definite way to check legitimacy of real estate agent you’re going to choose is by checking relevant certifications. It is critical that you only do business with PRC-accredited salespeople here in the Philippines. PRC accredited salespersons have been trained and have met the requirements to become a salesperson. These salespeople receive brokerage training and work under the supervision of a licensed real estate broker. You can request a PRC ID or certificate, which is legitimate under the Real Estate Service Act of the Philippines, or RESA, to market and sell real estate properties. The “Verification of Professional Licenses” page on the Professional Regulation Commission’s (PRC) official website is one place to star. On this page, you can see if an individual’s name is in the PRC Registry Books and check if the presented PRC license is still valid.
In addition, if the transaction involves the sale of a project or the representation of a developer, the agent must be registered with DHSUD, or the Department of Human Settlements and Urban Development. Check for the certificate if they don’t have an ID.
Someone who is responsive and compassionate
Buying and selling a home can always raise a number of concerns. Find a communicative agent who will respond to your questions promptly. I also believe that a compassionate agent who genuinely cares about the client is essential. You want someone who is looking out for the client’s best interests.
Knowledgeable and experienced
A local agent can best advise you on a sales price based on recent trends, such as whether prices in your neighborhood have been trending up or down in recent months. They can also assist you in narrowing down neighborhoods based on your priorities, such as proximity to good schools or distance from busy streets. A great agent is confident in his knowledge but also recognizes that what the client wants to know is more important.
Consider the agent’s experience, work ethic, and empathy when looking for one. It’s critical to work with an agent who understands what can be negotiated and can come up with creative solutions. Buyers should also look for an agent who has a good rapport with their clients, is personable, and enjoys educating them. Your agent should also be skilled at negotiating and understand the most effective way to distinguish your offer from the crowd.
Reviews from previous clientele
If you do not have a friend or relative who knows a trustworthy real estate agent, there is another way to determine the real estate agent’s credibility. This method involves looking through the agent’s previous clientele. A reputable real estate agent will undoubtedly have some people who can vouch for their work as a broker.
Read Also: Documents to Look for to Ensure the Legitimacy of a Property for Sale
Many people wonder how to tell if a real estate agent is legitimate. If you fall victim to real estate scams, your search for the perfect apartment could turn into the worst nightmare of your life. Scammers exist in every industry, and escaping their clutches is difficult. Rental fraud occurs when a landlord or agent attempts to sell a property that does not exist.
They take processing fees, security deposits, and application fees before you recognize them as con artists. Unfortunately, despite strict real estate regulations, the number of impostor real estate brokers is on the rise, and you must proceed with extreme caution when making the most important financial transaction of your life.
Furthermore, real estate scams have increased in recent years as a result of technological advancements. It’s probably never been easier for a con artist to place an internet ad that appears to be looking for a property but is actually looking for illegally obtained funds.
You’d like to think that the average online user is well-informed enough to recognize a scam when they see one, but that isn’t the case. Scammers would not continue to post these ads if they didn’t work in some way.
As a result, fake postings appear all over the place. If you fall victim to a scam, you should not feel ashamed. Intelligent marketing can deceive even those with extensive knowledge of the real estate industry.
Some people might get smooth talked and forget to check the legitimacy of the real estate agent they are contacting with. To protect your future home and avoid falling victim to real estate scams, keep an eye out for the following common housing frauds:
Scammers take advantage of foreclosed properties by offering them to unsuspecting clients, particularly OFWs, who are unable to personally inspect the properties. The scammer would pose as either the real home owner or an agent. They will then create fake official documents to present to the potential buyer.
When the buyers are ready to move in, they will be unable to contact the agent. In the worst-case scenario, the homeowners have already moved in, but when the bank comes to foreclose on the property, it will be up to the homeowners to deal with them.
Scammers take advantage of others by plagiarizing original listings. These are frequently found in online classified ads, which site administrators cannot personally verify. Alternatively, the agents may pose as potential buyers and gather all relevant information about the property.
Real estate agents who advertise properties that they are not authorized to sell engage in this deceptive practice. These homes are either not for sale or are being handled by a different agent. The property is listed at a low price to attract attention (the bait), but when a client inquires, the agent will claim that the house has already been sold or is no longer available. Agents will then present their own listings, which may be more expensive than their previous offer (the switch).
Fraudulent Land Titles
Property title fraud is a costly and devastating scam in which syndicates or fake agents work with their cohorts to persuade you to buy seemingly inexpensive properties. These con artists would take old titles and copy the information to create a new one. They would also include supporting documents to make it appear as if all of the paperwork was in order.
This scam occurs when less-than-reputable real estate developers, real estate agents, or even home sellers withhold information about the property that would cause potential buyers to think twice about purchasing.
It’s not uncommon to come across properties that appear to have a lot of promise, but when it comes time to sign the contract or turn over the keys, you’ll discover surprising facts or information about the property. Hidden charges, title complications such as tax delinquencies or encumbrances, or less-than-ideal structural facts such as poor property foundation are examples of these.
This is a con that targets not only home buyers, but also real estate developers and banks.
Once they have the information and even photographs, they will claim to be the homeowners’ representative. However, once the buyer has paid the fees and the initial payment, the agents will become unavailable or will make excuses when contacted.
Read Also: Where do these text scams come from?
Always exercise due diligence to safeguard your future residence. A crucial step in the home-buying process is research. You shouldn’t merely rely on the hired real estate agent. Do your research and make sure you know who you are dealing with. Check their credibility and the legitimacy of the property they are selling. While also checking the legitimacy of the real estate agent you’re partnering with.
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